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Geopolitics and Generative AI: Will Middle Powers Reshape the Map?

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BOSTON, Dec. 9, 2024 /PRNewswire/ — As the generative AI map takes shape, the US and China are asserting their dominance. Tech companies from these GenAI superpowers have built a substantial lead in the creation and large-scale commercialization of top-performing large language models (LLMs). Another group of countries—the “GenAI middle powers”—is emerging, however, each with distinct strengths that may enable it to compete at a regional, and even global, scale as a supplier of the technology.

A new report, “How CEOs Can Navigate the New Geopolitics of GenAI,” from the BCG Henderson Institute and BCG’s Center for Geopolitics, looks at the current state of play and the implications for both corporate leaders and policymakers.  

“As it becomes clear that GenAI will shape industries and societies, the emergence of middle powers signifies a critical shift in the global balance of technological power,” said Nikolaus Lang, global leader of the BCG Henderson Institute and a coauthor of the report. “For corporate leaders who are integrating GenAI into their business operations, relying solely on GenAI supplied by companies in the US or China could pose serious risks due to the possibility of regulations, data requirements and availability of the models all being vulnerable to shifts in government policy.” 

Two AI Superpowers…For Now 

The two AI superpowers—the US and China—are currently the only players with robust access to and control over sizeable portions of the entire GenAI value chain. They produce the most intellectual property (IP) and they have the largest AI talent pools; they have some of the richest data ecosystems in the world and the most data center infrastructure capacity, and they lead in capital access.  

The US has had a pronounced head start, building on decades of AI leadership. Nearly 70% of the world’s notable AI models since 1950 have been developed by or in partnership with US-based companies or academic institutions, as have 57% of top-performing large language models (LLMs). The US is home to 60% of the top 2,000 AI scholars in the world and attracted roughly one-quarter of all AI specialists that relocated globally between 2022 and 2024; its total AI talent pool has grown to nearly half a million people, the largest in the world. US-based GenAI startups have also received unparalleled private investment: a total of $65 billion since 2019. 

Some signs indicate that China is catching up to the US. Two Chinese companies (Alibaba and the GenAI startup 01.AI) contribute over one-quarter of the world’s top open-source LLMs. Established tech giants Baidu and Tencent have also released high-performing models, as have a new generation of GenAI startups, the so-called AI tigers. Top Chinese LLMs have substantially reduced the gap compared to state-of-the-art alternatives in the last year. China benefits from ample data center infrastructure and a strong AI talent bench, and current limitations in China’s access to cutting-edge chips for AI model training and inference are likely to delay rather than impede further progress.  

Who Could Emerge as a New GenAI Player? 

This US–China story has fueled a “two superpowers” narrative, but momentum is building in other parts of the world. 

The European Union can position itself as a significant GenAI middle power by combining the strengths of its member states. The EU is already home to a nascent GenAI startup ecosystem and has the second-largest global AI specialist talent pool. As a sizeable market, with a combined GDP of $18 trillion, it can support the development of locally developed AI models that may be viewed as more protective of users’ data in the context of its demanding regulatory environment. While its GenAI startups have attracted considerable investment, the EU faces challenges in scaling infrastructure and bridging the funding gap compared to the US and China.

Saudi Arabia and the United Arab Emirates (UAE) can rely on substantial sovereign wealth funds and focused investments to rapidly grow their AI talent bench, expand data center infrastructure, and develop high-performing LLMs. Saudi Arabia has committed $40 billion to AI development and is increasing its data center capacity, while the UAE has launched a $10 billion AI VC fund and developed high-performing Arabic language models. Both nations’ efforts are supported by low energy costs and easing restrictions on access to cutting-edge chips. To sustain current advancements, Saudi Arabia and the UAE will need to continue growing their respective talent bases and expand technology export markets.

Japan and South Korea can build on their established tech ecosystems, significant R&D investments, and expertise in hardware to position themselves as GenAI middle powers. South Korea benefits from its strong position in semiconductor manufacturing and domestic companies making inroads in developing LLMs, while Japan has fostered partnerships among corporate, academic, and governmental institutions to accelerate model development. However, both nations will likely need to pursue a regional focus to consolidate sufficient market demand to justify the scale of investments needed to compete in the GenAI space.

Some countries may be able to compete by capitalizing on their robust AI research ecosystems and talent pools to build better, more cost-efficient LLMs. For example, Canada and the UK are home to a sizeable share of the world’s top AI scholars, have produced many notable AI models, and have published some of the most important AI research papers. Israel, despite its smaller population, has a high concentration of AI specialists and has developed competitive models. For these countries, opportunity lies in accelerating research breakthroughs.

A Call to Action for Leaders 

On the one hand, companies across industries have a vested interest in a diversified supply of GenAI. The lessons of Covid-19 are stark: a massive disruption can create severe chokepoints and destroy value. If all options originate in just two countries, it could lead to disruptions in GenAI’s availability due to geopolitical shocks. Corporate leaders will need to build the “geopolitical muscle” required to sense coming shifts and adapt their operating models.  

On the other hand, because AI sovereignty may soon become a critical source of national security, economic value, and soft power, governments of countries or in regions with potential to become GenAI middle powers should consider what it would take to claim the space.  

“This race is far from over,” said Nikolaus Lang. “Both business and political leaders will need to navigate a dynamic and high-stakes environment, shaped by regulation, policy and technology. Whether the middle powers—and which ones—will establish a claim to the competitive supply of GenAI at a global scale is one of the biggest unknowns. How this plays out has the potential to rewrite the rules of the game.” 

Download the publication here:
https://www.bcg.com/publications/2024/how-ceos-navigate-new-geopolitics-of-genai

Media Contact:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com 

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

 

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SOURCE Boston Consulting Group (BCG)

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Howard Hughes Holdings Set to Join S&P SmallCap 600

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NEW YORK, Oct. 23, 2026 /PRNewswire/ — Howard Hughes Holdings Inc. (NYSE: HHH) will replace Arcosa Inc. (NYSE: ACA) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, October 28. S&P 500 constituent CRH plc (NYSE: CRH) has acquired Arcosa in a deal that closed today, October 23.

Following is a summary of the changes that will take place prior to the open of trading on the effective date:

Effective Date

Index Name  

Action

Company Name

Ticker

GICS Sector

October 28, 2026

S&P SmallCap 600

Addition

Howard Hughes Holdings

HHH

Real Estate

October 28, 2026

S&P SmallCap 600

Deletion

Arcosa

ACA

Industrials

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/. 

FOR MORE INFORMATION:

S&P Dow Jones Indices
index_services@spglobal.com

Media Inquiries
spdji.comms@spglobal.com

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SOURCE S&P Dow Jones Indices

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Chelsea FC announces multi-year sleeve partnership with Sokin, the business payments and FX platform

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Chelsea FC name fast-growing fintech platform as Principal Partner

LONDON, Oct. 23, 2026 /PRNewswire/ — Chelsea Football Club has today announced a multi-year partnership with Sokin, the embedded finance and payments company used by businesses worldwide. Sokin will be named a Principal Partner and Official Business Payments and FX Partner of Chelsea FC and Chelsea FC Women.

As a Principal Partner, Sokin will be represented on the sleeves of the Chelsea FC men’s, women’s and academy home, away, and third kits from the 2026/27 season.

The partnership brings together two ambitious London-headquartered organisations with worldwide reach – a club with millions of fans across the world and a fintech platform through which businesses move more than $11 billion a year. A club of Chelsea’s scale works in many currencies every day, with partners, competitions and supporters around the world, and needs a financial partner built to handle that.

Sokin gives finance teams business payments, multi-currency accounts, foreign exchange, checkout and treasury in one place, so they spend less time juggling banks and providers and keep more of what they move.

As Official Business Payments and FX Partner, Sokin will simplify how Chelsea FC sends, receives and manages money in the currencies the club operates in.

The Sokin logo will feature on the sleeve of the Chelsea shirt for the first time [when the men’s team host Tottenham Hotspur at Stamford Bridge on Saturday 24th October.]

Jason Gannon, President at Chelsea FC said:

“At Chelsea, we seek to partner with organisations that share our ambition and innovative mindset. Sokin’s expertise in business payments, and their focus on making both simpler for the businesses they serve, makes them a natural fit for the Club. We are pleased to welcome Sokin to the Chelsea family and look forward to working together in the years ahead.”

Vroon Modgill, CEO and founder at Sokin said:

“Chelsea plays on the biggest stage in world football, and its business runs in dozens of currencies. Sokin was built for that with regulated, multi-currency payments and foreign exchange for organisations that operate internationally. We’re proud to be the platform behind the business payments and FX of one of the most iconic teams in football. Sokin’s platform serves businesses in more than 170 countries. We’re thrilled to be partners for the season ahead. An organisation as sophisticated as Chelsea doesn’t leave its finances to chance.”

About Sokin

Sokin is the financial layer global business runs on. Businesses can transact, convert and hold money in 70+ currencies across 170+ countries. Some businesses use Sokin to manage global finance in-house. Others build it into their products to power financial experiences for their customers. Businesses move more than $9 billion a year on licenses Sokin holds in 36+ countries and infrastructure Sokin owns. Founded in 2019, Sokin has raised over $100 million from investors including Morgan Stanley Expansion Capital and Prysm Capital.

About Chelsea Football Club

Chelsea Football Club is one of the biggest, most successful football clubs globally and our men’s team are reigning world champions, having won the four-yearly FIFA Club World Cup in 2025. Our women’s team, Chelsea Women, are also multiple trophy winners.

Founded in 1905, Chelsea is London’s most central football club, based at the iconic 40,000-capacity Stamford Bridge stadium. Nicknamed the Blues, the club lifted the Champions League for the first time in 2012 and domestically has won the Premier League five times, the FA Cup eight times, the Football League Cup five times and the Football League Championship once, in 1955.

The Chelsea Women’s team have enjoyed a huge amount of success and in 2025 won the FA Women’s Super League for a sixth consecutive year and the eighth time overall. The Women’s FA Cup has been won on six occasions. We have also captured the FA Women’s League Cup four times as well as reaching the UEFA Women’s Champions League final in 2021. In two seasons, 2020/21 and 2024/25, a domestic treble of trophies was secured.

The Chelsea Foundation boasts one of the most extensive community initiatives in sport, helping to improve the lives of children and young people all over the world.

Media Contacts:

Taina Biggs
taina.biggs@sokin.com 

Nerissa Chesterfield
nerissa.chesterfield@chelseafc.com 

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Amy Johnson Appointed President of GDIT

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RESTON, Va., Oct. 23, 2026 /PRNewswire/ — General Dynamics (NYSE:GD) announced today that Amy Johnson has been appointed as president of GDIT, effective November 3.

Johnson is a 27-year veteran of General Dynamics Mission Systems, where she held increasingly senior roles in engineering, engineering management and business leadership across cybersecurity, defense electronics, space and intelligence systems, most recently as vice president and general manager for Space, Cyber and Intelligence. She earned bachelor’s and master’s degrees in computer science and computer systems engineering. 

“Amy has a proven track record of leading teams to solve complex and highly technical challenges for our customers,” said Phebe Novakovic, CEO of General Dynamics. “I am confident that her dynamic leadership, operational rigor and deep commitment to our values and culture will deliver value to our customers, employees and shareholders.”

GDIT delivers digital modernization, cloud computing, artificial intelligence, cybersecurity and software development solutions to the U.S. federal government, defense, intelligence agencies and other customers. It is a business unit of General Dynamics, a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at gd.com.

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SOURCE General Dynamics

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